Govt to Monetise Chorus Debt Early to Fund New Schools, Hospitals and Roads

Between 2012 and 2023, the Government provided $1.336 billion in interest-free loans to Chorus to accelerate the rollout of ultra-fast fibre broadband across New Zealand.

The Government has confirmed it will proceed with the monetisation of the debt it holds in telecommunications network company Chorus, unlocking hundreds of millions of dollars for critical infrastructure projects. Finance Minister Nicola Willis says the funds raised will be reinvested into new schools, hospitals, transport upgrades, and other essential public assets.

Background: Over a Decade of Crown Support for Fibre Rollout

Between 2012 and 2023, the Government provided $1.336 billion in interest-free loans to Chorus to accelerate the rollout of ultra-fast fibre broadband across New Zealand. This long-term financing arrangement was critical to ensuring national coverage, particularly in regions that faced slow or unreliable internet connectivity.

Chorus repaid $170 million of this loan in 2025, and with the fibre network rollout now complete, Willis says the investment has delivered significant value.

“Most Kiwis can now connect seamlessly with friends, colleagues and family all over the world. The loan to Chorus has served its purpose.”

Under the existing schedule, Chorus is not required to fully repay the loan until 2036, meaning the Crown would otherwise wait another decade to receive the remaining funds.

Monetisation Brings Early Return to Reinforce Infrastructure Budget

After testing the financial markets, the Government determined that selling the remaining loan obligations now—rather than waiting for repayment—was the most efficient option.

“The Government has decided to get the present value of its money back sooner so it can be invested elsewhere,” Willis says.

Infrastructure Minister Chris Bishop says the proceeds will be ring-fenced and allocated through Budget 2026 to support pressing infrastructure priorities.

“This is a pragmatic decision that will free up hundreds of millions for more urgent infrastructure needs.”

Process and Timeline

The monetisation process will formally begin in early 2026, with completion targeted for the second quarter of 2026, subject to market conditions, investor interest, and overall value-for-money considerations.

Key points:

• The securities involved are not ordinary shares, meaning they do not generate dividends.

• The Crown has no equity stake in Chorus, so the transaction will not affect ownership or governance of the company.

• Monetisation will simply transfer the right to future loan repayments from the Crown to investors.

No Impact on Customers or Chorus Operations

Bishop emphasises that the monetisation will not change the services Chorus provides.

“The early monetisation will not change the ownership of Chorus, nor change the services and assets it provides or owns.”

Chorus will continue to operate the national fibre network, which now reaches the majority of New Zealand households and businesses and remains central to digital connectivity, remote working, high-speed communication, and future telecommunications innovation.

A Strategic Move to “Fix the Basics”

Willis says the decision aligns with the Government’s wider strategy to free up capital for high-value infrastructure at a time when New Zealand faces significant cost pressures in health, education, transport, and regional services.

By converting long-term receivables into immediate funding, the Government aims to accelerate construction timelines and support economic growth in communities nationwide.